The joint agreement is for the development of an advanced 5 MW Solar Hybrid Thermal Power Plant at the net sale price of $21.5 million USD. The plant will be designed to produce more than 40 GWh of base load power with an over-sized solar field yielding a 25% solar capacity factor and, when operational, will be able to provide power for up to 20,000 average homes in India.
This plant is capable of producing $10M in revenue annually and over $250M in revenue with a 25 year PPA (Power Purchase Agreement). Site acquisition in Rajasthan, India, supported by a feasibility study for the 30 acre site, has been completed. The plant will be procured by Bergamo Harbinsons Energy, Ltd and will be supplied by a California based solar technology company.
Advanced solar thermal power plants have a distinct advantage over photovoltaics in their ability to deliver base load power with hybrid fuel flexibility. In addition, the operational life of these power plants can exceed 50 years, with little degradation of output in contrast to photovoltaic’s which degrade over time.
Bergamo Harbinsons Energy will provide all project development, civil construction and site-specific engineering for the project. The technology supplier will be responsible for providing the solar field, power block, balance of plant, and commissioning. Bergamo Harbinsons Energy will, in coordination with Andri Urja Pvt, Ltd, arrange project financing, project performance guarantees, as well as operational and maintenance services for the plant.
The payment terms of the contract provide for 10% advance payment at the time of the signing of the contract, 20% upon the receipt of shipment to the designated port in India and the last 70% of the payment will be received through an Irrevocable Letter of Credit. The title of the equipment will remain with Bergamo Harbinsons until final payment has been made. An insurance policy covering the project cost of $21.5M USD will be provided and paid for by the buyer at the time of contract.
Hillard Herzog, CEO of Bergamo Acquisition Corporation, noted, "I am excited to have reached this landmark agreement with Andri Urja Pvt, Ltd. This project will help pave the path toward broader energy diversification in India, and serve as a showcase project under the ambitious National Solar Mission’s goal of delivering 20,000 MW of clean solar energy in India. We look forward to signing a definitive contractual agreement when my management team returns to India, which is tentatively set for early November 2010."